India’s path to SaaS leadership is clear, but challenges remain

One of the most significant fields in technology nowadays is a software as a service. While its transformational potential was obvious before the pandemic, the abrupt shift to scattered workforces sparked a surge in interest in SaaS solutions as medium and big businesses embraced digital and remote sales procedures, greatly increasing their value. This problem is widespread, but India in particular has the potential to accelerate its SaaS growth. 

According to research by SaaSBOOMi and McKinsey, the Indian SaaS business is expected to produce revenue of $50 billion to $70 billion and win 4 percent to 6% of the worldwide SaaS market by 2030, worth up to $1 trillion. By 2030, the Indian SaaS business is expected to produce revenue of $50 billion to $70 billion, accounting for 4% to 6% of the worldwide SaaS market.

A number of crucial long-term factors are fueling this increase. Indian SaaS unicorns are on the rise. There has been a frenzy of invention and success in the Indian SaaS community. In the previous few years, Indian entrepreneurs have established over a thousand financed SaaS startups, more than tripling the pace from five years ago and spawning numerous unicorns in the process. According to SaaSBOOMi and McKinsey, these firms earn $2 billion to $3 billion in total revenue and account for about 1% of the worldwide SaaS industry.

These companies serve a wide range of clients and handle a wide range of issues, but some of them gained international notice during the epidemic by allowing newly remote workers to work from anywhere. Freshworks provided businesses with a seamless customer experience platform, and Eka extended its cloud platform to unify workflows from procurement to payments for the CFO office. 

Zoho helped streamline this pivot by providing sales teams with apps for collateral, videos, and demos; Freshworks provided businesses with a seamless customer experience platform, and Eka extended its cloud platform to unify workflows from procurement to payments for the CFO office.

Various SaaS companies kept themselves busy in other ways. Mail carrier, Zenoti, Innovacer, Highradius, Chargebee, and Browserstack, Mindtickle, Byju, UpGrad, and Unacademy were among the ten new unicorns born during the epidemic. 

There were numerous large venture capital deals, including a $150 million transaction for Postman, bringing the total amount raised by the Indian SaaS community in 2020 to roughly $1.5 billion, four times the amount invested in 2018.

While the Indian SaaS community achieved impressive success in recent years, there a number of important development drivers that might result in revenue of $1 trillion by 2030. They are as follows: The number of businesses who are comfortable using Zoom to evaluate items and make business choices is quickly growing. In terms of access to consumers and end markets, this adoption of digital go-to-market substantially levels the playing field for Indian enterprises.